INTERNATIONAL CO2 EMISSIONS CONTROL - AN ANALYSIS USING CETA

This paper explores issues of international cooperation in CO, emissio n control, We consider three cases: 'selfish,' in which region 1 contr ols optimally given its own damage costs and region 2 does not control ; 'altruistic,) in which region 1 controls optimally given total world wide damage costs while region 2 does not control; and 'optimal,' in w hich regions 1 and 2 exercise jointly optimal control of emissions and region 1 pays region 2 to participate, We find that neither region ga ins much in the selfish case; but both regions are better off in the o ptimal case than in the altruistic case, though region 1's benefits ar e negative in both these cases.